Czech Coal’s offer for buying the Pocerady power plant for 16.5 bln. CZK from CEZ expires tomorrow. Czech Coal said that this is the latest possible date for it to either secure the necessary coal or start reducing production. CEZ said that it could continue at PoCerady without the coal by operating only three of the five 200MW units and burning coal from its own Severoceské doly. Also, local press said that the EU Commission is to announce its decision this week in the antitrust case against CEZ. /Pocerady was one the most effective power plants of CEZ last year with estimated margin of 45%. A reasonable agreement between both parties would be definitely better for earnings of CEZ.
Thomas Epron, Areva’s director for Central Europe, said that the French company proposed a fixed price, as defined by CEZ, of 200-300 bln. CZK for enlarging Temelin. Areva met all the requirements, he said. Local press said that Areva failed to meet 7-8 of the requirements. Epron said that Areva will use all the appeal options at its disposal. We do not expect Areva to be invited back to the tender after disqualification.
CEZ is to hold EGM tomorow. Black coal power plant Detmarovice disposal (which is a subject of possible sale) are on the agenda.